SaaS startup Freshworks has now joined the dreaded list of companies laying off employees in major restructuring processes with the rapid integration of AI to streamline processes. The company announced axing about 13% of the staff, or over 660 employees, even as it buys back a whopping $400 million in shares. The company is expected to book somewhere between $11 million and $13 million in its restructuring charges.
Per reports, the company CEO Dennis Woodside, in his mail to the staff, informed them about the job cuts across the US, India, and other locations worldwide. Woodside, who joined the IT firm when founder Girish Mathrubhootham stepped down in May 1, further stated that during his first five months as CEO, one of the board directors directed him to focus on critical drivers of Freshworks’ business, which resulted in the company’s three strategic imperatives, including AI.
Dennis added that the company has realigned its global workforce to focus on its customer experience (CX), employee experience (EX), and AI. Amid the layoff announcement, the company’s stocks have surged by 28%. Meanwhile, the employee union has condemned the alleged forced resignation in the company, urging employees not to resign the same.
Freshworks is reportedly laying off 660 employees globally—about 13 per cent of its workforce.
In April 2023, @tam_arund reported that in a pursuit of profits, the SaaS company was painstakingly changing its employee-friendly DNA.
Read the full story for free in the link below. pic.twitter.com/HGMlSokvbf
— The Ken (@TheKenWeb) November 8, 2024
Union of I T and ITES Employees condemn the Freshworks announcement about retrenchment of employees in India for global restructuring Also @FreshworksInc management restores to antilabor practice of forcing employees to resign.We request employees to Dont Resign Organise Callus pic.twitter.com/Mk1iKhRM6i
— UNITE (@UNITEITORG) November 7, 2024
Freshworks announces plans to lay off 13% of its workforce while also planning a $400Mn buyback. Very weird. How can an organisation plan its business so badly?
These are real human beings you’re dealing with and not just ‘resources’. This greed needs to stop.
It’s not that…
— Nikhil Bidkar (@BidkarNikhil) November 8, 2024
The downfall of Boeing started when it spent heftily on share buy back ($68Bn) and followed it by lay-offs. Boeings leaders have accepted that their shareholders first, cut costs, employees be damed strategy is flawed after 2 decades.
Freshworks is merely echoing this.
— nope. (@stopfindinggme) November 8, 2024
Freshworks announced a layoff.
Stock up 30%.
This is a feature of capitalism. Not a bug. pic.twitter.com/py4K70lpcM
— Ravi Handa (@ravihanda) November 8, 2024
🚨NEW: Freshworks faces backlash for laying off 12-13% of its workforce while having $1B in cash and planning a $400M stock buyback.
Zoho’s @svembu calls out the move, saying companies prioritising buybacks over employees shouldn’t expect loyalty.https://t.co/kfbbHEqNRp
— Bhuvana Kamath (@bhuvsss) November 8, 2024
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